While this was lower than the previous year, it was £6.6bn more than the government’s forecaster had predicted.
The government cut National Insurance in March and there has been talk it could trim taxes again in the autumn.
The government cut National Insurance in March and there has been talk it could trim taxes again in the autumn.
In addition to the higher borrowing, she noted that government interest payments could be larger than expected given that interest rates are no longer forecast to fall as quickly as previously hoped. This would reduce the headroom for the government to meet its self-imposed spending rules.
Cara Pacitti, senior economist at the Resolution Foundation, the think tank focused on lower income households, said that the latest figures suggested there were “no signs of extra wriggle room” for any pre-election Budget.
The government’s independent forecasting body, the Office for Budget Responsibility (OBR), had predicted that borrowing over the year would be £114.1bn.
A general election has to be held before the end of January 2025, and there has been speculation the government will try to cut taxes again later this year before voters head to the polling stations.
The government cut National Insurance in March and there has been talk it could trim taxes again in the autumn.
While this was lower than the previous year, it was £6.6bn more than the government’s forecaster had predicted.
In addition to the higher borrowing, she noted that government interest payments could be larger than expected given that interest rates are no longer forecast to fall as quickly as previously hoped. This would reduce the headroom for the government to meet its self-imposed spending rules.
The government cut National Insurance in March and there has been talk it could trim taxes again in the autumn.
The government cut National Insurance in March and there has been talk it could trim taxes again in the autumn.
In addition to the higher borrowing, she noted that government interest payments could be larger than expected given that interest rates are no longer forecast to fall as quickly as previously hoped. This would reduce the headroom for the government to meet its self-imposed spending rules.
Cara Pacitti, senior economist at the Resolution Foundation, the think tank focused on lower income households, said that the latest figures suggested there were “no signs of extra wriggle room” for any pre-election Budget.
The government’s independent forecasting body, the Office for Budget Responsibility (OBR), had predicted that borrowing over the year would be £114.1bn.
A general election has to be held before the end of January 2025, and there has been speculation the government will try to cut taxes again later this year before voters head to the polling stations.
#borrowing #casts #doubt #preelection #tax #cuts
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